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Zomato received a ₹803 crore GST demand, including interest and penalties, for non-payment on delivery charges. The company plans to appeal the order. Zomato share price fell by 2.36% to ₹284.90 on the BSE.
Food delivery platform Zomato Ltd has been issued a ₹803 crore GST demand by the Joint Commissioner of CGST & Central Excise, Thane Commissionerate, Maharashtra. The order covers alleged non-payment of GST on delivery charges from October 29, 2019, to March 31, 2022. The demand includes ₹401.7 crore in GST dues, a penalty of the same amount, and applicable interest.
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Total Demand Amount: ₹803 crore (₹401.7 crore GST, ₹401.7 crore penalty).
Period of Demand: October 29, 2019, to March 31, 2022.
Reason: Alleged non-payment of GST on delivery charges.
Zomato Share Price: Fell 2.36%, closing at ₹284.90 on the BSE.
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Component | Amount (₹ Crore) |
GST Due | 401.7 |
Penalty | 401.7 |
Total Demand | 803.4 |
The company has stated that it intends to appeal the order, citing confidence in its legal position and external advisory opinions.
Zomato’s share price dropped by 2.36%, closing at ₹284.90 on December 12, 2024, following the announcement. The GST demand adds to the regulatory challenges faced by the food aggregator, potentially impacting its short-term market sentiment.
Despite the setback, Zomato remains firm in its stance, asserting that it has a strong legal case to counter the GST demand. The company plans to file an appeal with the appropriate authority to challenge the order.
The ₹803 crore GST demand underscores ongoing regulatory scrutiny in India’s food delivery sector. While Zomato plans to contest the order, the impact on its financial outlook and market sentiment remains to be seen.
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